What is bias horizon in SAP SCM-IBP-DM - Demand?

SAP Term: bias horizon

• Component: SCM-IBP-DM

• Component Name: Demand

• Description: Weeks in the past for which recent historical bias is calculated and used as input in the forecast bias optimization step of demand sensing. For example, if the bias horizon is defined as 1, 2, and 4, the forecast bias is calculated for 1, 2, and 4 weeks ago. A forecast bias occurs when there are consistent differences between actual outcomes and forecasts previously generated for the same quantities.

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• Key Concepts: 
  Bias Horizon is a feature in SAP's Demand Planning component of the Supply Chain Management - Integrated Business Planning (SCM-IBP-DM) module. It is used to adjust the forecast horizon of a demand plan to account for any bias that may exist in the data. This bias can be caused by seasonality, trends, or other factors. The Bias Horizon feature allows users to adjust the forecast horizon to better reflect the actual demand for a product or service. 
  
  How to use it: 
  To use the Bias Horizon feature, users must first identify any potential bias in their data. This can be done by analyzing historical data and looking for patterns or trends. Once any potential bias has been identified, users can adjust the forecast horizon accordingly. This can be done by setting a start date and end date for the forecast horizon, as well as adjusting the number of periods in between. 
  
  Tips & Tricks: 
  When adjusting the forecast horizon, it is important to consider both short-term and long-term trends. Short-term trends may be more difficult to identify, but they can still have an impact on the accuracy of the forecast. Additionally, it is important to consider any external factors that may affect demand, such as changes in consumer behavior or economic conditions. 
  
  Related Information: 
  The Bias Horizon feature is just one of many features available in SAP's Demand Planning component of SCM-IBP-DM. Other features include Demand Sensitivity Analysis, Forecast Accuracy Analysis, and Forecast Simulation. Additionally, SAP offers a variety of training courses and resources to help users get the most out of their Demand Planning solutions.